What is a Loan?

A loan is a temporary transfer of cash or book money from the lender to the borrower. The borrower is obliged to pay back the loan in the form of interest during the repayment period. In banking, the word credit is also known as the credit side of an account. The word credit comes from the Latin (credit) and means creditor.


Loans (personal loans) are granted exclusively to private individuals and are colloquially referred to as consumer credit, small loans, cash loans or personal loans. The legal framework for a loan is governed in Switzerland by the Consumer Credit Act (Konsumkreditgesetz, KKG).

The Swiss credit comparison portal Kreditvergleich.ch provides information about credit in relation to private individuals. Up-to-date information, comprehensive and consumer-oriented advice is available free of charge.


Loans for personal use.